46
Q & A
On the whole, the number of technology programmes in banking is increasing, and IT spend in banking is expected to increase in 2016 and 2017 by nearly 5% year-on-year. This growth will only add to the challenges that technology departments face, with the need for organisations to manage an ever-increasing programme portfolio. Strong leadership and control is essential as are a clear understanding of dependencies across the value chain, early identification of issues and fact-based decision making. All of this will ensure that value is derived from investment, whilst mitigating risk for organisations and customers.
IBS Journal: Banks spend millions on their systems. Would you agree that it isn’t an issue of lack of
funds, but more an issue of cultural change?
CD: To an extent, yes. This cultural change needs to start from the top. Very few banks have technology representation at board level. Ten years ago this was perfectly understandable, with technology being the
enabler rather than driver of the banking business. Today the emergence of the FinTech sector highlights the omnipresent nature of technology and the subsequent threat to the dominance of the large banks. Going forward banks must seek to appoint tech-savvy leaders, who understand exactly how to invest in technology and legacy refresh initiatives.
There is also a funding issue with the last few years presenting significant challenges for the industry. Firms are increasingly having to do more with less, which has led to the pursuit of cost savings across the board. From a supplier standpoint, the use of large outsourced vendors achieves mixed results. As a whole, banks need to be getting more from their vendors. With the industry in a state of perpetual motion, vendors often fail to perform consistently and in doing so increase banks’ exposure to technology risk.
Vendor management is now a factor that must be paid close attention in recognition of the fact that it is directly related to quality. Firms must select and engage vendors correctly from the
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